Action on Indian entities giving 'fake directors' to Chinese shell companies

Pankaj Prasad
Fake directors to Chinese shell companies
Fake directors to Chinese shell companies

Many Indian companies provide Indian nationals with no education or minor jobs as directors in Chinese shell companies.

The Ministry of Corporate Affairs (MCA) on Thursday initiated action against Indian institutions giving fake directors to Chinese shell companies in several cities of the country. This action has taken place in cities like Delhi, Bangalore, Hyderabad and Gurugram. According to news agency ANI, the Ministry of Corporate Affairs conducted raids at several locations today. The Ministry of Corporate Affairs is taking action against Indian companies providing fake directors in Chinese shell companies.

Raid on many companies: The raiding team says that the team raided many companies in Delhi, Bangalore, Hyderabad and Gurugram. Let us tell you, there are 25 to 30 MCA officers in this team who have raided. The team says that the raid will continue even further. Let us tell you, this action is being taken on those Indian companies who provide fake directors to various Chinese shell companies.

The raiding operation is going on: According to the report of ANI, the team said that many Indian companies provide Indian citizens without education or doing small jobs as directors in Chinese shell companies. According to the report, the raids are currently going on.

It is worth noting that earlier this month, the ED had conducted a search operation at six premises in Bengaluru in connection with the sugar loan app case. The agency said that the central probe agency had conducted the raids under the provisions of the Prevention of Money Laundering Act, 2002. The ED said that Razorpay Pvt Ltd, Cashfree Payments, and Paytm Payment Services Ltd are operated and controlled by Chinese people.